What Is an Open Permit?

An open permit is a building permit that was pulled for work on the property but never received a final inspection and sign-off from the building department. The work may have been completed, but the permit was never officially closed.

Open permits appear in the building department's records and are discovered during the title search or a permit search before closing.

Why Open Permits Are a Problem

• They indicate work that was never officially approved as meeting code
• Lenders may refuse to finance a home with open permits
• The new owner inherits responsibility for closing the permit
• Closing an old permit may require bringing the work up to current code standards
• In some cases, the work may need to be partially demolished to allow inspection

How to Close an Open Permit

1. Contact the building department to determine what's needed to close the permit
2. Schedule a final inspection
3. If the work passes inspection, the permit is closed
4. If the work doesn't meet current code, bring it up to code and re-inspect

Simple permits (like a water heater replacement) can often be closed in days. Complex permits (structural work, additions) may take weeks and require contractor involvement.

Selling With Open Permits

Options for sellers with open permits:

• Close the permits before listing — Cleanest approach; no buyer concerns
• Disclose and negotiate — Offer a credit for the buyer to close the permits
• Sell to a cash buyer — Cash buyers don't need lender approval and can purchase with open permits, factoring the closure cost into their offer